Data Centers in New Jersey

New Jersey – Low-Latency Hub for NYC & Global Finance

New Jersey is a premier colocation market for any business requiring low-latency access to the New York City metropolitan area and its global financial exchanges. With over 100 data centers and exceptional network density, the state provides a resilient and cost-effective alternative to Manhattan for mission-critical infrastructure. This combination of connectivity, power, and scale makes it a strategic choice for enterprises seeking high performance and uptime.

New Jersey: At A Glance

Network & Connectivity Ecosystem

New Jersey is one of the most connected markets in the world, serving as the primary network gateway for the New York metropolitan area.

Carrier Density & Carrier Neutrality The state hosts a dense network ecosystem with over 62 carriers operating within its borders as of September 2025. This environment is anchored by numerous carrier-neutral facilities, offering extensive choice for redundancy, performance, and cost management.

Direct Cloud On-Ramps With over 3 dedicated on-ramps, New Jersey provides direct, private connections to the world’s leading cloud providers, enabling access to 13 cloud regions. Available providers include:

• AWS
• Google Cloud (GCP)
• IBM Cloud
• Microsoft Azure

This allows enterprises to build secure, high-performance hybrid cloud architectures with minimal latency.

Internet Exchange Points (IXPs) While most peering occurs privately within data centers, the market has excellent access to the major public exchanges in New York City, including NYIIX and DE-CIX New York. These IXPs are easily reached via low-latency metro fiber circuits, ensuring efficient and cost-effective traffic exchange.

Bare Metal Bare metal cloud solutions are readily available from multiple providers in the New Jersey market. Options include services from providers like phoenixNAP and ColoCrossing, offering dedicated compute resources for performance-sensitive workloads.

Power Analysis

New Jersey provides a reliable and competitively priced power environment for data center operations.

Average Cost Of Power Industrial electricity rates in New Jersey typically range from $0.13 to $0.16 per kWh as of September 2025. These rates are favorable compared to neighboring New York, making it an attractive location for managing the operational costs of dense compute environments.

Power Grid Reliability The power grid supporting New Jersey's main data center corridors is well-engineered and resilient. Facilities commonly feature redundant connections to multiple utility substations, ensuring high levels of uptime for critical operations.

Market Access, Business & Tax Climate

The state's strategic location and business-friendly policies make it a compelling choice for digital infrastructure.

Proximity To Key Business Districts Data centers in Northern New Jersey are positioned for low-latency connectivity to Manhattan's financial district, serving Wall Street trading platforms, banks, and media companies. The state's central region also supports a large pharmaceutical and biotech corridor.

Regional Market Reach From New Jersey, businesses can effectively serve the entire Northeast corridor, reaching a massive population base from Boston to Washington, D.C. with sub-10 millisecond latency.

Tax Advantage For Data Centers New Jersey offers a general tax incentive through its Next New Jersey AI program. This initiative provides a state tax credit based on significant capital investment and the creation of new full-time jobs, which can directly reduce the long-term cost of establishing a major footprint.

Natural Disaster Risk

New Jersey has a High natural disaster risk profile, with a FEMA National Risk Index score of 75.31 as of September 2025. The primary threats are weather-related. Key risks for infrastructure planning include hurricanes, riverine flooding, winter storms, strong winds, and lightning. While risks like earthquakes and tornadoes exist, they are less frequent concerns compared to the annual threat of major coastal and inland storms.